Tesla has not abandoned the economical electric car project- “Reuters is lying”
Elon Musk denies rumors: Tesla remains working on an economical electric car project.
The Reuters news outlet dropped a bombshell a few hours ago. A cheaper automobile launch scrapped by Tesla. An internal effort called “Redwood” aimed to introduce a proposal with a $25,000 starting point. However, Elon Musk himself has stated that this rumor is untrue.
Elon Musk reportedly informed his staff that they would be better off placing their bets on the Robotaxi and that the fierce competition from Chinese electric vehicles would make it impossible to stick to the new economic model. This information was reported by Reuters. Musk himself announced that the self-driving cab would be unveiled on August 8.
Additionally, they clarify that Tesla would have had to decide to spend resources on an autonomous taxi that has been produced in much smaller quantities and at a greater cost because the company could not have achieved profitability with the low sales margins of its most accessible model.
Elon Musk denies the news
However, Elon Musk personally denied it on social media a few hours after Reuters published it, making it clear that Reuters was lying. Additionally, he ends it with “again.”
However, the shares of Tesla have dropped 6% in just a few hours due to this claim. Something that, once Musk’s own denial came to light, was only partially restored.
A cost-effective Tesla, still without a name, is anticipated to be released in 2025. A significant wager on the future of the US brand that doesn’t seem to have gotten the attention it deserves and that would have been somewhat postponed if resources had been directed toward Cybertruck’s introduction and the advancement of autonomous driving technology.
Furthermore, by 2025, there will be a bigger number of Chinese competitors than there are now, and they will also have a stronger international market presence. That will negatively impact Tesla’s standing, which has traditionally been defined as competently ahead of its competitors.
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